ST. LOUIS, MO – January 26, 2004 – SAVVIS Communications Corporation (NASDAQ: SVVS), a leading global managed IP and managed hosting services provider, today announced that on Friday, January 23rd, the U.S. Bankruptcy Court in Phoenix, Arizona approved its proposed purchase of substantially all of the assets of Cable & Wireless USA, Inc. and Cable & Wireless Internet Services, Inc. (“Cable & Wireless America” or “CWA”) for $155 million in cash and assumed liabilities of approximately $12.5 million.
Last week, SAVVIS submitted the winning bid to acquire the US hosting and network assets of CWA, which had filed for protection under Chapter 11 of the U.S. Bankruptcy Code in December of 2003. Under the terms of the sale, which is expected to close in the first quarter of 2004, SAVVIS will purchase substantially all of CWA’s assets, including its:
· World Class Tier 1 IP Network, with a footprint encompassing 27% of all Internet routes and providing a range of IP network services from public Internet to private lines; and its
· Comprehensive Hosting Services, with 15 data centers, a Fortune 500 focus, and a complete range of managed hosting, consulting and infrastructure services.
With the addition of the CWA network and hosting assets to SAVVIS’ existing world class IP network and hosting business, SAVVIS becomes one of the world’s largest IP/hosting infrastructure providers. The acquired assets will add over 5,000 customers and the combined entity is currently projected to have annualized revenues of approximately $700 million by year end 2004. The purchase of the CWA assets will further enable SAVVIS to expand its range of IP network services to include private line services and an expanded range of consulting and hosting infrastructure services. The company currently projects the acquisition could generate substantial infrastructure and operating synergies through the optimization of the combined network and hosting operations.
SAVVIS Communications (NASDAQ: SVVS) is a leading Managed Services Provider that delivers private IP VPNs (virtual private networks), hosting, IP voice and application services to businesses. SAVVIS solutions are designed for industries with demanding IP requirements, including legal, media, retail, professional services, healthcare, manufacturing, and financial services. With its recent acquisition of the commercial business of WAM!NET, the company now delivers fully managed media services that enable organizations to share, collaborate, store and manage content with their partners and clients, and accelerate their workflows in the process.
SAVVIS was ranked #3 in IP VPN market share by IDC in its 2003 report, trailing only AT&T and MCI/WorldCom. Known as The Network that Powers Wall Street(SM), its network reliability was declared “perfect” in Network World magazine’s groundbreaking study of backbone performance. In 2003, SAVVIS won the American Business Awards “Stevie”(TM) in the category of Best Customer Service Organization. SAVVIS’ managed hosting services were awarded the Service Provider Excellence Award by Boardwatch magazine for its virtualized approach to managed hosting, and the Market Engineering Award from Frost & Sullivan for product differentiation and innovation.
For more information about SAVVIS’ Intelligent IP Network(SM) and managed hosting solutions, visit: . For information about WAM!NET visit: www.wamnet.com.
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from SAVVIS’ expectations. Certain factors that could affect actual results are set forth as risk factors in SAVVIS’ SEC reports and filings, including its annual report on Form 10-K for the year ended December 31, 2002, as filed with the Securities and Exchange Commission on February 28, 2003, and all subsequent filings.